Convelo CEO Emphasizes Early Communication, Education & Transparency for Nonprofit and Social Service Renewals in Today’s Market

We recently spoke to Josh Lamberg, founder and CEO of Convelo Insurance Group, a national MGU providing specialty products for the nonprofit and social services industry. Josh’s success in the nonprofit/social services space on the agency retail side with Lamb Insurance was the genesis of forming Convelo in 2018, helping to market carrier products through a national retail distribution network.

Source: By Annie George, ProgramBusiness.com | Published on August 6, 2020

Convelo provides the underwriting experience and expertise in the nonprofit/social services space to support agencies looking to renew current accounts and expand their footprint in this sector. We spoke with Josh about the state of the insurance market and how agents should best approach the challenges they face in an environment characterized by diminished capacity, restrictive underwriting and substantial rate increases, particularly in the Excess/Umbrella line.

The soft market in the social service sector continued through the second quarter of 2019 and in the early part of the third quarter. “This all began to change in the third quarter, however, as reinsurance treaties were renewed and reinsurers collectively took note of the impact that social inflation was having on their underwriting profitability. An aggressive plaintiff bar increasingly funded by litigation financiers coupled with sympathetic juries has caused settlements and judgments to spike. Add to this a change in the statutes of limitations in many states for abuse and molestation claims, and we began to see a dramatic firming of the market that has continued throughout 2020, particularly for large and more complex accounts.”

On the Excess Casualty side, carriers have pulled back on the limits they will write, specifically for Professional Liability and Abuse & Molestation coverage – two lines with catastrophic implications. Coverage available through Umbrella purchasing groups for social services insureds with any type of habitational risk also saw their limits reduced or eliminated. In addition, some carriers changed their appetites and are no longer writing coverage for accounts with housing exposures. “Clients buying $25MM in Excess limits that last year included Professional Liability and Abuse & Molestation can now only purchase $2MM to $5MM from many of our competitors,” said Josh. “At Convelo, we can write up to $10MM with these much-needed coverages included in the Excess policy. We also insure accounts with habitational exposures.”

The COVID-19 Effect

Josh noted that during the first quarter of 2020 there were still plenty of new business opportunities available for retail agents. “With the onset of pandemic the insurance buyer behavior changed. Widespread concern regarding funding as well as a change in how social service organizations operate became the primary focus of decision makers. All of these changes in purchasing behaviors have led to less business coming in for agents. At Convelo, however, we are seeing opportunities from retailers who are remarketing their accounts. We have been very successful in continuing to grow in the market including for habitational-related risks.”

To help clients navigate a difficult renewal and new business insurance market exacerbated by the pandemic, Josh recommends agents adopt an approach that includes early communication, education and transparency. “Help insureds understand the challenges you face as a retail agent well ahead of the renewal, educate them as to what type of strategies you will employ, and be transparent regarding the feedback you receive from the markets. We feel this approach is how to best advocate for your clients and help them understand what is going on in the marketplace.”

Convelo Nonprofit/Social Services Program

Convelo holds the pen for its exclusive package program underwritten with an A.M. Best “A” rated admitted carrier. The package includes General Liability, Professional Liability, Abuse & Molestation, Property, Auto, Crime and $10 MM in Excess. Also available is D&O insurance and a competitively priced Workers’ Compensation product that has an available dividend. Convelo’s products – Package, D&O and Workers’ Compensation – can be purchased all together or separately. Other coverages available include Commercial Auto, Cyber Liability, Special Events, and more related to the needs of nonprofits/social services.

Eligible classes include a broad range of social services, including group homes, homeless shelters, supportive housing, YMCA, Big Brothers and Big Sisters, Boys & Girls Clubs, organizations with significant auto exposures and many others.

Convelo’s program is available nationwide on an open-brokerage basis. For more information about Convelo’s nonprofit/social services program or to discuss a specific account, contact Eric Smith at 732.944.0523 or via email at esmith@conveloins.com.

About Josh Lamberg 

Prior to founding Convelo, Josh worked for several national and international insurance companies in sales and marketing roles. In 2008 he founded Lamb Insurance Services, a retail insurance brokerage headquartered in NYC. He also had a short career as a professional baseball player. Josh graduated from the University of Richmond with a degree in Rhetoric and Communications.